Buying an EV to Save Money?

I've been getting a lot of questions about buying an Electric Vehicle (EV) in order to save money. Well, let's really discuss this topic as it is also a worthy learning exercise in how to practice good financial decision-making.

I always start with the understanding that everyone's financial profile/situation/facts/circumstances are different. That is why I believe that there's really no bad financial advice, just advice that either fits or it does not fit one's own financial goals and/or plans, to put it simply. So with that in mind, let's think through this idea of buying an electric vehicle to save money.

Yes, there are certain benefits to owning an electric vehicle, but there are also some downsides and limitations as well. It's important to not just focus on the new benefits but other factors too. We want to calculate the total benefits of ownership and consider as many factors as possible, so we can be more logical and not just rely on our emotions.

For example, there are "hidden/other costs" not generally discussed that need to be factored in because it's a big purchase and investment. Some of these factors include:
*Electric bill will go up more if you're on a tier schedule.
*If it's a 4 wheel drive, your tires will cost much more.
*Registration and insurance premiums will be more
*Less general car maintenance costs, but generally higher repair cost and longer waiting time to get your car back
*The cost of battery replacement are very expensive after the warranty
*Charging is limited and it may limit long distance travel

All-in-all, each person will have a different perspective on what will be the total and real cost to them, so it's important to be clear to think it through in your own decision making.

So, before you make the change over to an electric vehicle, or make any big financial decision, be sure to do your own total cost-benefit analysis.